Timbercreek U.S. REIT Preferred Fund - SICAV-SIF (Lux.)

Overview

Timbercreek U.S. REIT Preferred Fund1 (The “Fund”) aims to provide high current income, stable cash flow with a focus on capital preservation by investing in preferred securities (“Preferreds”) of listed U.S. Real Estate Investment Trusts (REITs).

Investment Rationale

Timbercreek believes U.S. REIT preferred securities offer investors a unique opportunity to generate high current income, while preserving capital. U.S. REIT preferreds are hybrid securities that exhibit fixed income-like characteristics such as stable income streams and low volatility, while producing equity-like total returns over the long term. Since 2000, U.S. REIT preferred securities have generated average annualized returns of approximately 9.7%2.

Relative to fixed income alternatives, the Fund feels that the valuation of U.S. REIT preferred securities is attractive and trading at wider spreads than historical averages. U.S. REIT preferred securities provide investors with added diversification benefits due to their low correlation characteristics, serving as a complementary investment to existing fixed income portfolios.